Practice Test

Q1) The current investments are valued on closing date at Show Answer

Q2) If an investment is acquired in exchange of another asset say land, the acquisition cost of the investment is determined by reference to Show Answer

Q3) Any reduction to market value of current investment from cost, on valuation date is debited to Show Answer

Q4) Current investments should be valued at the lower of cost and market value determined on Show Answer

Q5) Investments in immovable properties are to be shown under Show Answer

Q6) Interest on securities is paid Show Answer

Q7) When dividend is actually received on the due date Show Answer

Q8) When bonus shares are received ? Show Answer

Q9) When the rights shares are subscribed ? Show Answer

Q10) When the rights are sold (without subscribing) Show Answer

Q11) The cost of Right shares is Show Answer

Q12) Long term investments are carried at Show Answer

Q13) Short term investments are carried at Show Answer

Q14) A Ltd. acquired 2,000 equity shares of Omega Ltd. on cum-right basis at Rs.75 per share. Subsequently, omega Ltd. made a right issue of 1:1 at Rs.60 per share, which was subscribed for by A. Total cost of investments at the year end will be Rs. Show Answer

Q15) Interest is always calculated on the_____ value of the security Show Answer

Q16) If a security is transferred on the exact date when interest falls due, the entire interest up to that due date belongs to the ____. Show Answer

Q17) If a security is transferred on any date other that the due date for payment of interest, the _____has the right to claim the Interest upto the date of transfer as his income. Show Answer

Q18) If a security is transferred on any date other than the due date for payment of interest, the purchaser has the right to claim the Interest ______ the date of transfer as his income. Show Answer

Q19) Dividend on shares accrues on the date of its ______. Show Answer

Q20) If XYZ Ltd. pays a dividend on 30-09-2008 for the year ended on 31-03-2008, dividend on shares held as on 31-03-2008 will be treated as ___ receipt; and on share acquired between 01-04-2008 and 30-09-2008 will be treated as ____ receipt. Show Answer

Q21) When shares are purchased, Cost is entered in the ______ column (Dr.) in the Investment Account. Show Answer

Q22) When dividend is actually received on the due date, the pro-rata amount relating to the period after the date of acquisition is entered in the ______ Column (Cr.). Show Answer

Q23) When dividend is actually received on the due date, the pro-rata amount relating to the period ______ the date of acquisition, if any, is entered in the Capital Column (Cr.). Show Answer

Q24) Interest is always calculated on the Market Value of the security Show Answer

Q25) Interest is paid to the holder of the security on the due date, in respect of his actual period of holding. Show Answer

Q26) If a security is transferred on the exact date when interest falls due, the entire interest upto that due date belongs to the purchaser. Show Answer

Q27) If a security is transferred on any date other than the due date for payment of interest, the purchaser has the right to claim the Interest upto the date of transfer as his income. Show Answer

Q28) If a security is transferred on any date other than the due date for payment ofinterest, the seller has the right to claim the Interest after the date of transfer as his income. Show Answer

Q29) Ex-Interest price Less Accrued interest = Cost of the investment. Show Answer

Q30) Total Payment by purchaser = Ex-Interest Price - Accrued interest. Show Answer

Q31) Dividend is always calculated on the Face value or Nominal Value of the shares. Show Answer

Q32) Dividend on shares accrues on the date of the book-closure by the company. Show Answer

Q33) Dividend on shares is paid to the holder of the shares on the date of declaration, irrespective of his actual period of holding. Show Answer

Q34) When bonus shares are received only the Nominal Value of such bonus shares is entered in the Investment A/c. Show Answer

Q35) When the rights are sold (without subscribing) no entry is made in the Investment Account Show Answer

Q36) When the rights are sold (without subscribing), Sale proceeds are credited to the Profit & Loss Account. Show Answer

Q37) Whether the price is cum-interest or ex-interest, accrued interest is always calculated and entered in the Income column in the Investment Account. Show Answer

Q38) Profit on sale of current investment is transferred to profit & loss A/c; while profit on sale of long term investment is transferred to Capital Reserve. Show Answer

Q39) Investment held as long term investment is always valued at cost at the year end as per AS 13. Show Answer

Q40) Nominal Value Column in the Investment Account is only a memorandum column Show Answer

Q41) Investments intended to be held for less than 12 months is called _______ investment Show Answer

Q42) The requirements regarding investment are specified in AS________ Show Answer

Q43) Cost of investment includes Show Answer

Q44) The cost of investment sold is to be calculated as per_______method. Show Answer

Q45) Investment are classified into Show Answer

Q46) The interest on bonds is to be calculated on_______ Show Answer

Q47) Current and long-term investment should be further classified into Show Answer

Q48) The carrying amount of long-term investment is to be shown at________ Show Answer

Q49) Any reduction to market value of current investment from cost, on valuation date is debited to Show Answer

Q50) Y Ltd. purchased 1,000 share @ Rs.120 each and paid brokerage @ 2% the cost of acquisition is _______. Show Answer

Q51) Investment in immovable properties are to be shown under Show Answer

Q52) When dividend is actually received on the due date Show Answer

Q53) Equity shares is a _______ Show Answer

Q54) When the rights shares are subscribed Show Answer

Q55) Cost of rights shares is________ Show Answer

Q56) Issue of bonus shares is entered in_______ Show Answer

Q57) Profit on sales of investment is transferred to ________ Show Answer

Q58) Investment can be purchased at Show Answer

Q59) Dividend on shares accrues on the_______ Show Answer

Q60) Rights' to share can be Show Answer

Q61) Fixed return bearing investment are_______ Show Answer

Q62) Interest on securities is paid Show Answer

Q63) Sale of right shares is_______ Show Answer

Q64) When the rights are sold(without subscribing). Sale value is Show Answer

Q65) Loss on sales of investment is_______ Show Answer

Q66) If an investment is acquired in exchange of another asstes say land, the acquisition cost of the investment is determined by reference to Show Answer